Definition ∞ Bitcoin smart contracts are self-executing agreements with terms coded directly onto the Bitcoin blockchain. These agreements leverage Bitcoin’s robust security and decentralized structure to facilitate verifiable transactions without needing intermediaries. Implemented through technologies such as Script, Taproot, and the Lightning Network, they enable functions like multi-signature wallets, time-locked transactions, and payment channels. This expands Bitcoin’s utility beyond simple value transfers, allowing for more complex transactional programmability.
Context ∞ Current discussions surrounding Bitcoin smart contracts focus on enhancing the network’s programmability while maintaining its foundational security and decentralization. Advances like the Taproot upgrade and ongoing layer-2 innovations, including the Lightning Network, are central to this expansion. Future development aims to strike a balance between advanced functionality and the network’s stability, which remains a primary technical consideration.
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